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2019 (3) TMI 1303 - AT - Income TaxAdditional depreciation on energy meters @80% - in the first round of proceeding ITAT directed the AO to allow depreciation @ 80% after verification - AO again disallow stating it as measuring instrument relying upon BIS report - non application of mind - HELD THAT:- Tribunal in BSES Rajdhani Power [2015 (11) TMI 927 - ITAT DELHI] categorically held that depreciation at 80% was available in respect of simplicitor electricity/energy measuring meters and there was no additional requirement of such meters being energy saving devices. Tribunal held that the assessee has successfully able to demonstrate that it was very much entitled to claim depreciation on energy meters @ 80%. The Tribunal has categorically given a finding on depreciation on energy meters @ 80% as only this much has to be verified by the AO as to whether it is inextricable/integral part of meters without which the meter cannot function and accordingly allow depreciation on the same. But instead of verifying these aspects, the AO has given a finding on the basis of Bureau of Indian Standards Report and relying on the same held that energy meter is merely a measuring instrument and not appliances which can be classified as energy efficient and hence was not eligible for depreciation at the higher rate of 80%. AR has given plethora of decisions including the decision in case of Union of India Vs. Kamlakshi Finance Corporation Ltd. [1991 (9) TMI 72 - SUPREME COURT OF INDIA] wherein it is held that orders of High Court/ Appellate Authorities are binding and revenue interest is no excuse for failure of lower authorities to follow those orders as the law provides appeal procedure for safeguards. The principles of judicial discipline require that the orders of the higher appellate authorities shall be followed unreservedly by the subordinate authorities. AO is duty bound to follow the directions of the Tribunal in its true spirit and should have not gone beyond what has been directed to be verified by the Tribunal to the Assessing Officer. - Decided in favour of assessee.
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